© Reuters. FILE PHOTO – The logos of car manufacturers Renault and Nissan appear in front of the two companies’ dealerships in Le Couto, France, July 13, 2023. REUTERS/Gonzalo Fuentes/File Photo
Written by Maki Shiraki and Daniel Lusink
TOKYO (Reuters) – April W Renault Three people familiar with the matter said the EPA will make an announcement in the coming days about its restructured alliance and finalize the deal, capping ten months of sometimes tense negotiations.
The automakers announced a framework agreement in February and aimed to wrap up negotiations as early as March. Under this framework, the Japanese automaker will acquire up to 15% of Renault’s new electric car unit, Ampere, while Renault will reduce its 43% stake in Nissan (OTC:).
That timeline was extended when senior Nissan executives and some managers challenged the detailed provisions of the deal, citing the need to better protect Nissan’s intellectual property, Reuters reported.
The delay has complicated Nissan’s campaign to put its decades-old relationship with Renault on an equal footing. Nissan executives have sought to rebalance the alliance that former president Carlos Ghosn built after his ouster left the automaker in turmoil.
Two of the people said Nissan is working on a minimum strategic investment it has committed to in the Renault unit that would be less than the 15% maximum it announced in February. While the size of the investment ultimately hinges on the value of Ampere, Nissan is likely to take less than 10%, someone said.
All of the people declined to be identified because the information is not public.
“Nissan and Renault are engaged in constructive and ongoing negotiations. We will issue a statement in due course when agreements are concluded,” the Japanese company said in a statement.
Renault declined to comment. The French automaker said it expects to list Ampere in an initial public offering in the first half of 2024. Sources said the unit could be worth up to 10 billion euros ($11.2 billion).
Intellectual property concerns
Renault wants to attract more investors to Ampere, given the massive investment required for connected cars. Nissan and Renault’s junior partner, Mitsubishi Motors (OTC:) have also indicated that they may invest in the company. The American chip giant Qualcomm (NASDAQ:) has announced that it will indeed invest.
One person said that the discussions focused on how to deal with future intellectual property — including technology that may not yet exist. A Mitsubishi spokesperson said it was still considering investing in Ampere but nothing had been decided on.
Talks have also been delayed as Nissan’s board had to deal with an allegation that CEO Makoto Uchida censored his then-deputy, Ashwani Gupta, after Gupta expressed opposition to some of the terms of the new partnership with Renault, Reuters reported.
Gupta, who had been serving as chief operating officer and was widely seen as a candidate for Nissan’s chief executive officer, departed for Nissan in June. The three people said the board had not heard the final report on the monitoring claim.
By closing the restructured Renault deal, Nissan executives have the opportunity to focus on other challenges, including updating a mid-range strategy and a change in approach in China, where Nissan sales are slumping, and those of other global automakers.
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